A Crutch for EU Banks?
More Aggressive Use
Of ECB Repo Window
Raises Some Concern

By

Duncan Kerr

Updated June 11, 2008 12:01 a.m. ET

The securitization industry has another worry to add to a lack of transparency and investor skepticism: overdependence on the European Central Bank.

Since last September, euro-zone banks have been using the ECB's standard repo -- a refinancing operation to secure short-term funding -- by pledging asset-backed securities with the ECB. Credit analysts estimate that as much as &euro;150 billion ($234.42 billion) of assets have been...